The treasury bill auction on April 11 saw total bids of GHS 6.87 billion across the 91, 182 and 364-day securities with a total of GHS 6.74 billion accepted by the government. The auction resulted in a slight oversubscription as the government had set out a target of GH¢6.68 billion.

Interest rates recorded for the week were 15.45%, 16.22% and 18.65% for the 91-day, 182-day, and 364-day securities respectively. A slight drop from the 15.65%, 16.5%, and 18.83% recorded in the previous auction. The sustained decline in interest rates does not appear to have dampened the market’s appetite for treasury bills, as investors are still choosing to play it safe given the market turmoil of the past few years. There’s therefore still some demand expected for the GH¢6.6 billion which the government plans to raise in its next auction.

Finance Minister, Ato Forson, has committed to a front-loaded fiscal consolidation even after the repeal of the e-levy which brought in about 1% of tax revenue in 2024. He is likely to reiterate this commitment to the IMF team that are in town for the fourth review. Should his plan to rein in spending materialise, interest rates are likely to remain low.